Debt cap: gateway test: calculation of worldwide gross debt
The worldwide comparator for the gateway test is the worldwide gross debt.
For any period of account of the worldwide group, the worldwide gross debt is the average of the group’s consolidated relevant liabilities (see CFM90710) at the end of the period of account and at the end of the previous period of account (TIOPA10/S264(1) ).
The calculated figure of worldwide gross debt cannot be negative.
So if the relevant liabilities for a group for the year ended 31 December 2011 are £250 million and for the year ended 31 December 2012 are £350 million, the worldwide gross debt for the period of account ended 31 December 2012 is £300 million.